💼 Understanding Indian Salary Breakup: Structure, Components & Excel Logic
A typical Indian salary breakup comprises various components that determine your earnings, deductions, and employer contributions. While the exact structure may vary across companies, the following table offers a standard format that is widely used for salary analysis and Excel modeling.
This structure helps explain each salary component and the Excel formula or logic used to calculate it – ideal for HR professionals and Excel users.
| Type | Components | Excel Formula / Logic |
|---|---|---|
| A. Total | Gross Salary | Enter the gross amount manually |
| B. Earning Components | Basic & DA | =Gross * 60% |
| HRA | =Basic & DA * 40% | |
| Medical Allowance | =(Gross – Basic – HRA)/3 | |
| City Allowance | =(Gross – Basic – HRA)/3 | |
| Other Allowance | =(Gross – Basic – HRA)/3 | |
| C. Deduction Components | ESI (Employee) | =IF(Gross < 21001, Gross * 0.75%, 0) |
| PF (Employee) | =IF((Gross – HRA) < 15001, (Gross – HRA) * 12%, 1800) | |
| Professional Tax (PT) | Flat rate | |
| D. Net Pay | Net Salary (Take Home) | =Gross – ESI – PF – PT |
| E. Employer Contributions | ESI (Employer) | =IF(Gross < 21001, Gross * 3.25%, 0) |
| PF (Employer) | =IF((Gross – HRA) < 15001, (Gross – HRA) * 13%, 1950) | |
| Bonus | =Basic & DA * 8.33% | |
| Gratuity | =Basic & DA * 4.81% | |
| F. CTC | Monthly CTC | =Gross + ESI (Employer) + PF (Employer) + Bonus + Gratuity |
| Annual CTC | =Monthly CTC * 12 |
📊 Note: A downloadable Excel salary breakup calculator will be optionally available later for practice.
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